Better-for-you concept True Food Kitchen announced Monday that it has declared bankruptcy.
The casual chain shuttered 12 stores in conjunction with the court filing, leaving it with 34 restaurants across 14 states. True Food Kitchen will undergo a sales process and use court protection to improve its financial standing, restaurant footprint, cost structure, and operational improvements.
The brand is supporting itself through bankruptcy with $20 million in debtor-in-possession financing from HumanCO TFK IV. The chain owes roughly $42.1 million in debt, including some merchant cash advance agreements with multiple lenders.
“True Food Kitchen is a pioneering brand with a distinctive position in wellness-driven dining, a loyal community of guests, and a mission that is more relevant than ever,” CEO Jeff Chandler said in a statement. “This process is the best path forward to simplify the business and focus on what we do best: delivering craveable, health-forward food and genuine hospitality. We are confident this step will help us build a stronger True Food Kitchen for the future.”
True Food Kitchen was founded 18 years ago in Phoenix, Arizona, by wellness author Dr. Andrew Weil and restaurateur Sam Fox. It is positioned as a healthier alternative, focused on an anti-inflammatory diet, minimal processing, and simple ingredients.
The chain was originally a part of Fox Restaurant Concepts, but was spun off in 2017 when it reached 20 locations. By 2022, the company had announced a $100 million funding round, the largest investment in the chain’s history.
True Food Kitchen reached 46 restaurants before closures began.
The brand has been hampered by significant management turnover, which has in turn led to inconsistency around expansion strategies, brand direction, and menu innovation. Different leadership teams invested money outside of core markets and devoted resources to food and beverage lineups and restaurant concepts that were not aligned with the company’s original values, according to court documents. One of these ideas included the Tempe, Arizona-based True Food To-Go, a quick-service prototype that never gained traction.
COVID disrupted operations as well. To make up for the loss of in-person dining, True Food Kitchen transformed some locations into ghost kitchens and opened an off-site kitchen for delivery only. These ventures have since been terminated so that the brand could focus on the main dining experience.
Some restaurants are profitable, while others are in areas with low foot traffic because of shifting markets and demographics.
Leading up to the bankruptcy, True Food Kitchen looked to resolve its financial woes by hiring Chandler in July 2026, engaging with consulting firms to help assess real estate and potential strategic alternatives, laying off corporate staff, renegotiating vendor contracts, looking for buyers to take over unexpired leases, and only keeping staff necessary to handle bankruptcy administration.
“We know these decisions are especially hard on the team members affected, and we are deeply grateful for their contributions to True Food Kitchen and their communities,” Chandler said. “We are committed to approaching this difficult moment with care and respect, and we will share information on resources and next steps with affected team members.”
